SIMAD University

Quiz Ch 12 and Ch 13
Date: March 26, 2014

Name: __________________________________________________

Class: __________________________________________________

Marks: __________________________________________________

Part one: Questions

Answer the following Questions

1. Define Partnership And Corporation

2. How are similar and different paid-in capital and retained earnings?
3. Why?
Part Two: Problems

Problem 1

Yuusuf and Dhuuxo have capital balances on January 1 of $50,000 and $40,000, respectively. The

partnership income-sharing agreement provides for (1) annual salaries of $20,000 for Yuusuf and

$12,000 for Dhuuxo, (2) interest at 10% on beginning capital balances, and (3) remaining income or

loss to be shared 60% by Yuusuf and 40% by Dhuuxo.

Instructions

(a) Prepare a schedule showing the distribution of net income, assuming net income is $50,000

Lecturer: Yusuf H. Mohamed Class: BECo-05 Subject : Acc II

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 SIMAD University
Name: __________________________________________________

Problem Two

The following stockholders equity accounts, arranged alphabetically, are in the ledger of Dulqaad

Corporation at September 30, 2014

Common Stock ($5 stated value) $1,700,000

Paid-in Capital in Excess of ParPreferred Stock 280,000

Paid-in Capital in Excess of Stated ValueCommon Stock 900,000

Preferred Stock (8%, $100 par, noncumulative) 500,000

Retained Earnings 1,134,000

Treasury Stock (10,000 common shares) 120,000

Instructions

Prepare the stockholders equity section of the balance sheet at September 30 ,2104

Lecturer: Yusuf H. Mohamed Class: BECo-05 Subject : Acc II

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